1. Field
The present disclosure relates to the field of counterfeit detection for precious metal bullion pieces, a term that encompasses bullion rounds, ingots and bars of pure or almost pure precious metal and used for investment. Examples of precious metal bullion pieces include but are not limited to sovereign bullion coins such as the South African Krugerrand, the American Gold and Silver Eagle, the Canadian Gold and Silver Maple Leaf and the Austrian Gold Philharmonic, and the like. The present disclosure relates to a method, system and apparatus utilized for the automated authentication of precious metal items for the primary purpose of counterfeit detection. An embodiment encompasses a device, method and system empowering the automatic authentication of precious metal bullion by utilizing computer vision and associated data capture techniques in conjunction with multiple non-destructive testing methodologies.
2. Description of the Related Art
Counterfeit or forged renditions of genuine examples of precious metal bullion items are illegal and made with the intent to defraud others. Investment grade bullion is defined as a bulk quantity of precious metal, usually gold, silver, platinum or palladium assessed by weight and typically cast as bars or coins. Bullion monetary value is based on precious metal content and fluctuates daily based upon world commodities markets.
The recent advancement in underlying technologies necessary to produce very high quality fakes along with advanced techniques in metallurgy necessary to produce sophisticated metal alloys has evolved making even moderately well trained counterfeiters capable of producing very good counterfeit coins and bars. Since 2008 the value of gold bullion has increased dramatically and high quality counterfeit coins and bars continue to be a problem for unknowing precious metals bullion investors. The subject matter disclosed and discussed herein meets a current and demanding need that has been identified by experts in the industry by implementing a portable, point of sale counterfeit bullion detection device. At present there exists no device that performs the multitude of testing procedures required for immediate, point of sale authentication for precious metal bullion products. An embodiment of the subject matter disclosed herein utilizes, in part, an optical digital metrology technique known as close range photogrammetry. An important basis for this type of macro digital imaging and measurement stems from similar concepts as utilized in computer vision and biometric recognition systems. The present disclosure provides a unique method by which a common person may utilize a fully automatic procedure to authenticate precious metal bullion by employing required multiple non-destructive tests within a single operation on a single device with the means to effectively and accurately authenticate bullion items without expert human participation and providing an automatic determination of genuineness to the user at the point of sale, before a purchase is made.
Today, accepted industry standard procedures utilized for the authentication of precious metal bullion products always include human participation in order to perform a series of evaluative testing procedures to accurately assay, assess and render a final decision determining the genuineness of a precious metal product. Human participation is usually performed by an experienced assayer, appraiser or grader with some past experience in precious metals assay and authentication. In order to effectively assay precious metal bullion one must accurately measure the critical physical properties of the subject and determine without fault the exact shape, weight, size, thickness, mass and volume while at the same time ascertaining the composition of any alloy, or base metal combination which determines the underlying precious metal fineness, or purity of the metal. The apparatus performs a full and complete assay of the subject coin but unlike numismatic collectables the apparatus disclosed and described herein does not assign a grade or condition nor does the apparatus of the disclosure assign any monetary value to precious metal bullion coin or bar. No determination as to coin grade, quality or value is attempted, or issued. However, the apparatus of the disclosure does automatically authenticate precious metal bullion coins and bars by using a definitive combination of industry standard non-destructive test procedures, without human participation in the assay. The sole purpose of the assay is to determine the authenticity and genuineness of the bullion coin or bar and issue an automatic pass or fail determination as to the genuineness of the item.
The bullion industry continues to recognize the distinct difference between the identification of a coin and the much more involved process of bullion coin or bar authentication. Simply put, it is known that the mere identification of a coin is to simply recognize it as a particular thing or item, thus essentially establishing the grand scale “make and model” of the item. It is also known that simply the identification of a coin or bar does not speak to the actual genuineness of the item. Alternatively, the series of processes undertaken for valid authentication sets forth on the path to establish “proof of identity” and as such necessitates performing a multiplicity of procedures or testing in accordance with actually confirming the truth of the “identity” already established on the grand scale. Accurate and reliable authentication can only be established with the reasonable confirmation of the primary attributes and data of the item under scrutiny. The proper procedure of “authenticating” a known identity must lie within the comparison of the attributes of the object itself to what is known about the origin of the object. A proper analogy for the purpose of further explanation of the difference between identifying an item and authenticating an item may be explained as simply as the following statement: “While the bank employee was standing outside the vault door waiting for permission to enter, the security camera on the wall identified him as employee Joe Smith. When Joe Smith placed his index finger upon the biometric fingerprint reader located at the vault door his identity was authenticated and permission was granted for entrance into the vault.” Joe Smith's known identity was further authenticated with additional testing in order to confirm his known attributes of origin (fingerprints).
Today within all ranges of science and industry, including the commercial precious metals bullion industry there are certain analysis techniques and testing devices designed to evaluate properties of components, materials and metals without permanently causing damage to the material being investigated. These applications are known as non-destructive testing (NDT) procedures. Most often it is NDT testing procedures that are chosen to test precious metals items for the industry and private individuals. NDT testing devices widely vary and their differing techniques are utilized based upon the needs of individual users. Various testing procedures may rely upon the use of thermo-electric effects, electromotive force identification, electromagnetic radiation, x-ray fluorescence or diffraction, the measurement of acoustic velocity and other optical microscopy procedures, among others. Often combinations of NDT testing methodology may be used for determinations required in special categories of testing like the authentication of precious metal bullion. The investment bullion industry supports certain NDT testing depending on the needs of each user or client. It is known in the investment bullion industry in order to accurately authenticate investment bullion items like coins and bars no single NDT test procedure is considered adequate on its own to draw a conclusive, reliable determination of genuineness. For instance testing procedures utilizing x-ray fluorescence tools are widely used for elemental analysis on bullion products and are very accurate in breaking out specific alloy concentrations from base metals, but this test, in itself, is not a singular basis upon which to fully and accurately authenticate a bullion coin. It merely determines the mix of metallic elements of the item essentially qualifying the karat quality of the precious metal alloy. It will not quantify the precious metal nor does it weigh or measure other geometric properties of the coin. As a single test, it is inconclusive as a complete and accurate assay method for accurate authentication purposes. Likewise, the use of an ultrasonic NDT device made for measuring the acoustic velocity of sound pressure waves as they pass through an object, like a precious metal bullion coin, or bar, is quite effective at another level of inspection. It is very accurate in detecting imbedded foreign objects and other dissimilar metals, or inhomogeneous voids inside material. It is also accurate in measuring thicknesses of materials. On occasion, it is also used to create ultrasonic images of an item. A bullion coin tested with this NDT technology would certainly reveal internal flaws or voids in the precious metal, or identify imbedded slugs of a dissimilar metal. But, just as with the NDT x-ray technology a single ultrasound test does not qualify enough necessary information in order to complete a reliable assay effective enough to accurately authenticate a bullion coin or bar. The test may show that the coin has no internal flaws but ultrasound testing will not size, or weigh, the coin or qualify the precious metal alloy as to its fineness. Alternatively however, the apparatus and system of the disclosure are exceptionally capable of performing multiple tasks and testing procedures required in order to make an accurate judgment of genuineness and, if genuine, will automatically issue an immediate determination of authenticity for precious metal bullion items. The multiple testing procedures are either completed concurrently or consecutively and without participation in human will, or intervention by human hand.
Numismatic coin collecting is recognized worldwide as a hobby and is known officially as the study and collecting of coins, currency, medals, tokens and paper money. Numismatic coins have a monetary value based upon their rarity, demand, condition and mintage. Numismatic coin grading procedures rely heavily on a trained observer's eye and his experience in the field, and numismatic coins are graded using an industry standard alphanumeric scale. The scale rates all inspected coins using the following symbols; (G) for “good”, (VG) for “very good”, (F) for “fine”, (VF) for “very fine”, (EF or XF) for “extremely fine”, (AU) for “about uncirculated”, and (MS) for “mint state” condition coins. Mint state (MS) is the highest grade rating on a declining scale. In addition to the symbols used, each grade is assigned a numeric representation for its position within each recognized level. A number rating from 1-70 is assigned to each subject with 1 representing the worst possible condition of a specimen and 70 being the best possible condition. A coin rated as “mint state 70” (MS-70) would be considered the highest rating possible thus translating its graded condition and value assessment as superior to that of a lesser rating for coins of the same issue, for example “mint state 68” (MS-68). Other extenuating circumstances or market conditions may also allude to value adjustments up, or down, as determined by the professional grader. For instance a particular coin's rarity or popularity may figure into its final market value. Although coin graders are highly trained individuals usually held in high regard within the numismatic community, the industry also occasionally uncovers irregularities in awarded grading classifications. Some disagreement has been known to occur even between well respected graders as it is understood that, though grading standards are strictly adhered to, the subjective nature by which grades are applied may lead to occasional grade disparity, even among the most respected graders. The inherent difficulty in assessing accurate grades that are consistent is found within the actual process in which the system operates today. When classifying coins within the aforementioned scale categories, human intervention can lead to only subjective analysis at some level. The method of physically comparing the inspected subject to line drawings, photographs, textural descriptions and other facsimile coins cannot always lead to exact grade matches every time by every grader and are always susceptible to interpretation differences between the experts and, as a result, grade classifications even one step apart may have immense consequences in final values, creating thousands of dollars of difference in the potential assigned market value simply as a result of different professional grader's opinions and the resulting coin classification.
It is well known and realized within the industry that contemporary, or modern investment grade precious metal bullion is wholly different from numismatic collectable precious metal coins and bars that are graded and assigned value by professionals. Contemporary precious metal bullion essentially bears no premium value above its “melt value”. A small dealer markup on each coin is usually all that's considered on each coin. The present device of the disclosure maintains only to measure the physical properties of the precious metal bullion in order to issue a determination of its genuineness. No market value is determined, contemplated or assigned.
From an investment perspective, precious metal bullion and numismatic precious metal collectables are not regarded the same as they differ tremendously in purpose as well as their respective function as an investment. A numismatist may collect precious metal bullion as part of a collection, but a serious bullion investor invests in physical bullion products primarily as a store of wealth separated from the fiat currency system and counter party risk. Thus, a very important distinction between the two types of precious metals, bullion vs. numismatic, is in part the manner in which the market value assessment for each is acquired and determined and assigned. It is commonly known by those in the art that precious metal bullion is valued strictly for its mass and purity of content, with its commercial market value reflective only of the daily spot market price offered for good delivery. It is also commonly understood in the industry that physical bullion possesses much lower premium fees than numismatic collectables making it more advantageous to acquire as a store of wealth for investors, as opposed to numismatic collectors who typically pay extra for an intrinsic value markup over the “melt value” of the precious metal. Physical bullion also requires no further assay, appraisal or third party grading process in order to qualify or quantify its precious metal content in the event an investor wishes to promptly liquidate his investment bullion holdings. Almost every sovereign mint issuer of bullion coins and bars makes a public claim to guarantee the authenticity of its own precious metal products. Accordingly, precious metal investors generally agree that physical bullion it is a relatively safe and secure investment tool as a store of wealth. The only realistic downside of purchasing investment grade bullion in today's market is that it requires the investor to trust his supplier. The quantity of trust is inversely scaled to the extent of one's own personal knowledge and expertise in precious metal bullion. In other words, the less one understands about bullion as an investor the more one needs to trust your supplier. Most typical bullion investors and dealers must rely on their individual personal knowledge and expertise in the industry, while at the same time optimistically trusting the supplier of the precious metal bullion.
Precious metal bullion in its various forms is not generally accepted as common currency or coinage in day to day commerce in most countries today. Numismatic coins, ancient coins and other types of collectable coins having greater market value than do common investment grade precious metal bullion items are rarely, if ever, exchanged bought, or sold, for their “melt value”. For those knowledgeable in the art it is known that the term “melt value” means the current market value contract spot price associated with the underlying precious metal commodity for the known amount of content. Accordingly, “melt value” is utilized more often with investment grades of precious metal bullion, as opposed to numismatic collectables, and therefore generally recognized as a store of wealth proportionate to the volume, weight and fineness of the precious metal as held. It is commonly known today that precious metal bullion coins and precious metal numismatic collectable coins are not subjected to automated coin authenticators for assaying purposes simply because they do not exist. As mentioned, numismatic collectables generally have an assigned market value in excess of the known precious metal content of the coin due to other market driven conditions particular to that coin. For instance, supply and demand inconsistencies for individual issues, the coin's age, the coin's rarity, occasional misstrikes and manufacturing errors of production, or low volume issues may be factors in imparting an additional premium to the intrinsic monetary value. Numismatic collectables may be held in collections as a store of wealth much as investment grade bullion is held as a store of wealth. However, it is commonly known that numismatic collections are considered by those in the art as less liquid in the secondary market than investment grade precious metal bullion items tend to be.
Professional coin graders often assess numismatic coins and collectables with premium values based on their knowledge of the present market and the condition (grade) of the subject at the time of the inspection. The grader's findings are known to be substantially subjective and fully dependent upon each reviewer's individual past experience. Often multiple graders work independently of one another within the same organization and average the individual grades to establish a more uniform finding. Numismatic coins, ancient coins and other collectables that are graded in this manor tend to exhibit market values much greater than sovereign investment grade bullion. It is also commonly known by those in the art that sovereign minted precious metal bullion coins are produced with great care and precision only occasionally producing a misstrike or die defect example of an issue. Even though stringent manufacturing specifications are followed while striking or casting precious metal bullion items every design specification allows for minor deviations within the specified tolerance as an allowable standard of deviation. One knowledgeable in the art knows that the allowable specification deviation is known by the term “remedy”. The apparatus and system of the disclosure understand remedy tolerance and utilize dedicated algorithms to identify those coins exhibiting allowable production specification tolerances (remedy) before final assaying conclusions are issued.
It is paramount to understand that the apparatus and system herein described is designed as a fully automated precious metal assaying and authentication system, independent in its operational system without the customary human intervention necessary to complete a multidisciplined assay and authentication of precious metal bullion, including the automatic issuance of a pass/fail determination of authenticity of the subject under review. More importantly, the apparatus and system of the disclosure do not purport to assign a market value or coin grade determination to the bullion upon completion of inspection, but simply indicates authentic subjects over those that are not genuine.
Significant technical advancements within the disciplines of computer science and optics have led to more refined techniques for computer vision and computer aided inspection greatly increasing the potential for superior assaying processes for bullion metals while at the same time implementing more efficient faster and lower cost alternatives than available previously. One embodiment of the apparatus of the present disclosure accomplishes the inspection and assaying procedure in part by accurately acquiring the physical properties and characteristics of the subject by using principles of image-based recognition, more specifically close range photogrammetry. The present disclosure provides to both novice and experienced users fully automatic image-based data collection for the purpose of precious metals bullion authentication.